ABB Plans to Sink $280M In New European Robotics Factory

ABB plans to invest $280 million in Sweden's new European robotics factory. The move from the Swiss engineering and technology company is to satisfy the increasing customer demand.

With the investment, the tech firm aims to facilitate continuous production to eliminate log jams in supply chains during its transition from Asia.

ABB Expands to Sweden, Builds Its European Robotics Campus

ABB announced its expansion move into Europe via a blog post on Wednesday, September 13.The company stated the plan is to set up a highly developed ABB Robotics European Campus in Vasteras, Sweden.

The firm expects to push the new Campus to become its hub for robotics services within Europe. The new establishment will offer AI-powered collaborative and industrial robots and provide digital solutions with flexible automation to fit the country's local production strategy.

According to its plan, ABB will focus on completing all production processes for its new Campus to ensure its opening in late 2026.Reacting to the new development, Bjorn Rosengren, ABB Chief Executive, noted that the company's expansion move will scale higher due to the anticipated market growth in Sweden.

The executive stated:

The new facility in Sweden will strengthen our capabilities in serving our customers in Europe with locally manufactured products in a growing market. Already today, around 95 percent of the robots ABB sells in the region are manufactured here. This is a strong commitment to our local for local" strategy and to all our robotics customers across Europe.

ABB hopes its move to Sweden will enhance its global leadership position in robotics and automation. The new facility will increase ABB's production capacity by over 50%.

Also, the Campus will boost the firm's supply capacity within the European market, which it plans to scale by 7% before 2027.

By completing the Campus in Sweden, ABB's total investment in its three robotics facilities since 2018 will amount to $50 million.

These include the company's giant factory in Shanghai, China, which satisfies its Asian customers, and the site in Auburn Hills, which covers its American clients.

Increasing Tension in China Scares Robotics Companies and Users

Notably, the tension between China and Washington has escalated, creating an unconducive environment for many robot manufacturers and users. Subsequently, some production firms have considered relocating from China to save their manufacturing footprint.

Rosengren also reacted to the situation in China and robotics manufacturing companies, as reported by Reuters.He stated that his firm needs a shift amid the present trend in other companies. However, he mentioned that ABB's commitment to China will remain unfazed.

Further, Rosengren noted that some firms, especially American-based ones, could have cold feet about investing in China. They could prefer to shift their investment plans to other Asian countries.

The executive mentioned that the Chinese economy seems to reflect a weaker recovery rate from the COVID-19 pandemic than expected by many. However, he believed that the country could do better in the future.

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